Friday, October 3, 2014

A new look at Cadchf

Before I start,please take time to read my last post on this pair (click here).

Price broke the triangle I talked about and went back immediately giving me no real chance of buying.

The congestion is not looking over yet as we have price moving up and down to form a larger triangle.

As price adds up to itself, we ask ourselves, are we still in line?. Being able to follow price and allowing it to connect with us is very important. That's why I chose elliot waves analysis as my primary tool.

With what price came up with of recent, it shows clearly that the first corrective wave ( wave 2) of wave 5 of the impulsive moves ( in blue) is about to be completed as a triangle corrective pattern.

If this is anything to go by, we expect the price to break the upper line of the triangle for an explosive move upside. I will wait for a chance to buy at the break to target 0.8810.

Conversely, if price breaks the triangle downwards, what we will be having is a complex correction or temporary change in trend which requires more studies and patience.

Either way, price determines where it goes and we just have to understand him and follow. We should see a real action next week.

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